Political, Legal, and Regulatory Environment

Switzerland’s stable government and economy creates the perfect business atmosphere. Their hands-off approach to foreign investors is very appealing to global companies. Switzerland position is very strong for property rights protection and strong legal trade. Switzerland’s taxes are rather low. Tax break incentives are in place in the country to attract foreign businesses to the country. Switzerland’s widespread arrangements of treaties are in position to avoid double taxation. Switzerland has the reputation for making quality products and services. So companies that have chosen to use Switzerland as their headquarters for global operations can do so with the Switzerland reputation behind them. Switzerland regulations are not prejudice against foreign businesses. Imports and exports must be labeled in three of Switzerland’s official language: French, German, and Italian. Pharmaceutical products need to be approved by the government before exported or imported. The only strict regulations relate to agricultural biotechnology products.

Switzerland's Social and Cultural Environment

Switzerland has 3 distinct cultures: German Swiss culture being the majority, French Swiss and Italian Swiss cultures being the minority. These cultures have preserved their language, traditions, and customs. Even though the Swiss people are very diverse they all have pride for their country.
Switzerland’s official languages are: German, French, Italian, and Romansch. Romansch is derived from Latin and is spoken by less than 1% of the population. There is no “Swiss” language.
The two major religious groups are: Roman Catholic and Protestant.
As in other countries your status in life is very important, but with the Swiss it is very looked down upon if you flaunt your status within the community. The Swiss are a very private people. They can be to some extent ethnocentric and be wary of outside influences. Excellence, precision, and promptness are important traits among the Swiss.
Even though Switzerland has laws on the books about the equality of women, they still lag behind a lot of countries. Couples in Switzerland seem to marry later than the average. On average Swiss men get married about the age of 31 and Swiss women about 28. The average age that a Swiss woman gives birth for the first time is 29. The reason for the increased age for marriage and children is that Swiss people consider furthering their education a very an important task to complete before starting a family.
As far as business relations, Switzerland is generally a low-context culture although the French Swiss and the Italian Swiss tend to be a higher-context culture than their German Swiss counterparts. The Swiss enter into business relationships cautiously. The Swiss respect a person that is dependable, reserved, and self-confident. In business dealings with the people of Switzerland, talking softly and clearly is the best way to establish credibility. Once the trust has been gained and the business relationship is established, Swiss loyalty will be the reward.

General Information about Switzerland

Location
· Located in west central Europe
· Bordered by: Italy, France, Austria, and Liechtenstein

Size
· Switzerland is measured to be 41,285 square kilometers
· It is about the size of Colorado which is 40, 271 square kilometers

Population
· 7.4 million people
· 60% of the population live in the cities

Natural Resources . Hydro-power potential
· Timber
· Salt

Natural Terrain
Switzerland has 3 major geographic regions
· Jura mountains
o Elevation 3 to 4 thousand feet
o Along the Swiss/French border
· Swiss Plateau
o Hilly but not mountainous region that covers 30% of the country
o Where all the major cities are located
· Swiss Alps
o Elevation; many alpine peak exceed 12 thousand feet
o Covers more than half of the country
o The Alps are a continental watershed
o The rain, snow, and melted water feed Switzerland’s Rivers and Lakes

Government
Switzerland is a republic
. The President is head of state and head of the government
o Elected annually by the legislature.
. The Federal Council is the main executive body
o Composed of seven members who are elected every 4 years by the legislature.
. The Federal Assembly is a bicameral legislative body
o Members are popularly elected
. Council of States
o 46 seats
o Serve 4 year terms
. National Council
o 200 seats

Specific Trade Agreements
. Although they are not a member of the European Union they have a bilateral agreement with the EU member states.
. Is part of the EFTA-European Free Trade Agreement